Making a Profit Selling Solid Houses to Citizens of New Orleans

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“The Everhouse.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A9) Tomorrow, tens of thousands of people who lost their homes in Hurricane Katrina and are still living in federally owned trailers will be forced to find a new place to live. After nearly three years, the federal government’s temporary housing is coming to an end.

These folks are not going to have an easy time of it, because affordable housing in the Gulf Coast region is scarce. The problem has persisted despite billions in government aid – and the efforts of large private developers – because of a shortage of skilled laborers and sky-high insurance rates.

Yet now there is hope, in the person of John Sawyer. Not only does this 64-year-old Bostonian believe he can build houses people can afford to buy and insure; he says they will withstand the next big storm. And, by the way, he intends to makes a tidy profit.
. . .
The dwellings will arrive in the form of kits that can be assembled in as little as 14 days. With walls of reinforced concrete, there isn’t much wood, and so mold won’t pose a major problem if the houses are ever flooded. They can “take a bath” as the locals say. Everhouses also cost $68 a square foot, less than half the going rate for affordable housing in New Orleans.

The upshot of the house’s durability and cost is that it’s easy to insure.

For the full commentary, see:
JAKE HALPERN. “A Market Solution to Hurricane Risk.” The Wall Street Journal (Sat., May 31, 2008): A9.
(Note: ellipsis added.)

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